Why long-term U.S. stock market outperformance could be because it has avoided major catastrophes. Does an over-reliance on historical U.S. stock returns when modeling retirement outcomes lead to spending rates that are too high?
Topics covered include:
Why you might consider earthquake insurance
What is survivorship bias and what are some examples
Why the U.S. is an outlier when it comes to stock market performance
Why the 4% retirement spending rule might be too high
If the 4% spending rule is too high, what can retirees do instead to have enough for retirement
Why the size and scale of the U.S. economy provide some resistance to catastrophes
